WRITTEN EVIDENCE
18. Memorandum submitted by ActionAid
1. EXECUTIVE
SUMMARY
1.1 ActionAid believes that urgent action
is required on a number of critical WTO issuesin particular
on TRIPs, implementation, services, agriculture, process, new
issues, technical assistance and capacity building and special
and differential treatmentif Doha is to be a genuine development
round. However, little if any progress has been made on any of
these issues. For example, implementation issues remain a priority
for developing countries but many issues remained unresolved.
1.2 Progress on agricultural negotiations
is slow and currently some proposalsfor example from the
EUshow no signs that export subsidies will be phased out
and that domestic subsidies will be substantially reduced.
1.3 Whilst many developing countries continue
to oppose the introduction of new issues, the developed countries
continue to push for their inclusion. Developing countries remain
concerned that new rules on investment, for example, will undermine
development by removing controls that countries place on inward
investment. Developing countries are also concerned that their
inclusion will severely limit their already stretched negotiating
capacity within the WTO. New issues should not be part of the
Doha agenda.
1.4 There is an urgent requirement that
the review of the TRIPS Agreement clarifies that there should
be no patents on genetic resources for food and agriculture. Rich
countries must also honour their Doha commitments that the Agreement
does not and should not prevent countries from taking measures
to protect public health.
1.5 If Doha is to become a development agenda,
it is also imperative that the principles of special and differential
treatment and non-reciprocity are at the heart of the WTO. This
would include, as a matter of urgency, the introduction of a development
box within the Agreement on Agriculture (AoA).
2. INTRODUCTION
2.1 ActionAid[1]
welcomes the opportunity to submit evidence to the House of Commons
International Development Committee Inquiry on Trade and Development:
Aspects of the Doha Agenda. We particularly welcome the focus
of the Inquiry relating to aspects of the WTO's Doha agenda and
member states' commitments to making this round of trade negotiations
a "development round". However, we also believe that
the issues chosen for consideration by the Inquiry make it far
too narrow, and that for Doha to be a genuine development agenda
the Inquiry should also be looking at other key concerns, including
process, implementation, TRIPs, new issues and services.
2.2 For Doha to be a genuine development
agenda, it must address the most pressing needs of the world's
poorest countries and of the world's most vulnerable communities.
The Doha Ministerial Declaration (and the other agreed texts at
the end of the Ministerial) fails to do this. Developing countries
argue that their priorities in the WTO (for example implementation
issues) continue to be marginalised at the expense of developed
country interests (for example, new issues and services). Wide
income disparities have also accrued from the Uruguay Round. Developed
countries were the main beneficiaries whilst least developed countries
(LDCs) and sub-Saharan African countries are estimated to have
been net losers from trade. Predictions from a further round of
trade liberalisation suggest that the income generated will again
be very unevenly distributed with only marginal net gains in sub-Saharan
Africa and South Asia. [2]These
imbalances must not be allowed to continue.
2.3 ActionAid's submission will attempt
to address the many issues that should make up a development agenda.
We have given particular attention to the four priority issues
identified by the Committee whilst adding a further section on
TRIPS (food security and health). We have given particular emphasis
on the three areas where ActionAid has most competence, namely
agriculture (see section 4), TRIPs (see section 5) and New Issues
(see section 8).
3. THE DOHA
AGENDAWILL
IT BE
A DEVELOPMENT
ROUND? [3]
3.1 ActionAid does not accept that a "one
size fits all" approach to trade liberalisation through the
WTO will ultimately be of benefit to all developing countries.
Whilst the WTO extends special treatment in trade agreements to
developing countries, this amounts to no more that providing additional
time to implement agreements rather than ensure they can implement
trade policies that are consistent and appropriate to development
objectives. WTO processes should also be more open and transparent
so as to ensure the full participation of developing countries.
For these reasons, ActionAid believes that there needs to be substantial
reform of the WTO, and revision of the Doha Ministerial Declaration
and the other agreed texts at the Ministerial for Doha to be a
genuine development agenda. At a minimum, such an agenda must
address the following issues immediately.
3.2 Implementation: Outstanding issues
regarding the implementation of certain agreements from the Uruguay
Round must be resolved. For example, developing countries have
had difficulties in the implementation and obligations of the
TRIPS and TRIMs Agreements. There must also be immediate implementation
of the proposals for growth-on-growth increase in quota levels
for developing country textile exports (bearing in mind that WTO
members are already required to abolish all quota restrictions
on textiles by January 2005) and procedural improvements in anti-dumping
so to put an end to the abuse by developed countries of anti-dumping
disciplines as a protectionist measure.
3.3 Agricultural goods: All forms
of export subsidies should be eliminated immediately and trade
distorting domestic production subsidies should be phased out
as soon as possible. A development box should be introduced in
the Agreement on Agriculture, providing developing country governments
with the flexibility to protect their small farmers from dumping.
The Marrakesh decision should be overhauled and implemented. Developed
countries should grant all LDC exports tariff-free and quota-free
access to their markets.
3.4 Services: Developed countries
and the WTO Secretariat should respect the demand from many developing
countries for a full and thorough assessment of the GATS Agreement
and the Agreement to be revised accordingly.
3.5 Non-agricultural goods: The world's
poorest countries have demanded that a full and thorough assessment
of the development implications of non-agricultural market liberalisation
in developing countries is conducted prior to the start of any
negotiations. This is essential in order to minimise the negative
impacts on their economies of market access negotiations for non-agricultural
goods. Developed countries should grant all LDC exports tariff-free
and quota-free access to their markets.
4.1 Dumping in the agricultural sector is
the sale of exported products in third markets at less than the
cost of production in the exporting country. Dumping from the
North is possible because export subsidies bridge the gap between
high internal EU prices and lower world prices (as in sugar) and
direct payments bridge the gap between higher costs of production
in the EU and the lower world price (as in wheat). Dumping has
three main effects; depressing world prices, displacing developing
country exports out of third markets and undermining local domestic
production in developing countries because producers cannot compete
against cheap imported products. This is having a devastating
impact on farmers, often driving them from the land, depriving
them of livelihoods and seriously undermining food security.[4]
[5]
4.2 It is against this background that,
in agriculture, the Doha Ministerial declaration called for:
substantial improvements in market
access (see section 6);
reductions of, with a view to phasing
out, all forms of export subsidies;
and substantial reductions in trade-distorting
domestic support.
4.3 According to the outgoing Director General
of the WTO Mike Moore, as well as many developing country governments,
reducing the levels of agricultural subsidies in rich countries
is the "number one element of a true development agenda"[6]
As part of the renegotiation of the Agreement on Agriculture,
the EU is the main user of export subsidies and trade-distorting
domestic support and thus the EU's position with regards these
subsidies will be instrumental in determining whether Doha will
be a development round.
Export Subsidies
4.4 The EU proposes to reduce the value
of export subsidies by 45% from its final bound commitment from
the Uruguay Round (which was 7,448 million euros). The EU's actual
expenditure following the Uruguay Round is as follows:
(Million euros) |
1996-97 | 1997-98
| 1998-99 | 1999-2000
| 2000-01 |
Actual outlay | 5,565 | 4,361
| 5,336 | 5,614 | 2,763
|
% below final
bound level | Not applicable
| na | na | na
| 63% |
4.5 Whilst the value of export subsidies is coming down
(consistent with WTO and CAP commitments), the current proposal
on export subsidies would in effect commit the EU to do nothing
in a new round that it is not already doing (ie the EU would be
able to maintain the current level of export subsidies on the
most sensitive products such as dairy, sugar and meat). One of
the reasons for this is that during the Uruguay Round the EU negotiated
favourable reference years and high final bound levels. Vast quantities
of export refundsboth by value and volumewill be
available to exporters to dump onto the world market, particularly
developing countries.
Domestic Subsidies
4.6 The EU proposes to reduce its Aggregate Measure of
Support (AMS) by 55% from its final bound commitment from the
Uruguay Round (which was 67 billion euros). The EU's actual and
estimated expenditure following the Uruguay Round is as follows:
(Billion euros) | 1997-98
| 1998-99 | 1999-2000
| 2000-01* | 2001-02*
| 2002-04* | Post 2004
|
Actual outlay | 48 | 47
| 50 | 40-42 | 37-40
| 30-34 | 35+ |
% below final
bound level | na
| na | na | 37-40%
| 40-45% | 49-55% | 48%
|
Estimated for EU-25 in line with Agenda 2000 reforms
* Estimated for EU-15 in line with Agenda 2000 reforms
4.7 Figures for 2000-01 onwards have yet to be notified
to the WTO but the reforms to the CAP under Agenda 2000 will have
further decreased AMS support ("amber box" in WTO language).
As such, ActionAid strongly believes that the current AMS is substantially
below 48 billion and this will fall again when further reforms
(particularly to the dairy and sugar sectors) are forthcoming.[7]
4.8 But equally significant is that there is no mention
in the EU proposal of the blue and green boxes. Whilst AMS support
is coming down, the EU is progressively moving domestic support
away from AMS support (amber box) to direct payments (blue box)
so that, in effect, the overall level of subsidies remains largely
the same. [8]Whilst the
current review of the CAP proposes a move away from direct payments
to decoupled payments (essentially a further move of subsidies
out of the blue into the green box)[9],
ActionAid believes that the effect will again be the same and
such subsidies will continue to distort production and trade and
lead to dumping.
4.9 In conclusion, as with export subsidies, the current
proposal on AMS domestic support would in effect commit the EU
to do nothing in a new round that it is not already doing. Again,
one of the reasons for this is that during the Uruguay Round the
EU negotiated favourable reference years and high final bound
levels. Vast quantities of domestic subsidies (whether in the
amber, blue or green boxes) will be available to enable producers
to sell at less than the cost of production and for exporters
to dump low-priced products onto the world market, particularly
developing countries.
Food Aid
4.10 Whilst food aid is not specifically covered by the
WTO's AoA (although the EU is calling for tighter disciplines
on food aid within the WTO), when agricultural production levels
are high and world prices are depressed, rich countries have dumped
the surplus in developing countries in the form of food aidthis
too, distorts local markets and can be a disincentive to production.
4.11 The necessity of relief food aid to mitigate nutritional
stress resulting from natural or man-made disasters is undisputed.
However, it requires careful management to meet the needs of the
most affected groups and avoid disincentive effects on local agricultural
production. Of the different types of food aid the most controversial
one is programme aid, which consists of commodities provided to
a recipient government or its agent for sale on the local market.
Normally it is not targeted towards those parts of the population
which are most affected by food insecurity. It may even impinge
on the food security of farmers in recipient or nearby countries
as it depresses prices and discourages local production. Programme
aid (or aid in kind) is also often used to dispose surpluses of
the donor countries and is not responsive to the needs of recipient
countries. Project food aid provided on a grant basis to specific
target groups is less problematic but in most cases not the most
efficient way to provide assistance to vulnerable groups. In addition,
whilst the EU, as the second largest donor, has made significant
steps to reform its food aid, the USA still ties all food aid
to exportable surpluses. A significant share of the aid is administered
by the US Department for Agriculture (USDA) and aims explicitly
at stabilising the domestic market and open new export markets
for US producers.
4.12 The shortcomings of programme food aid and the increased
need for relief food aid is increasingly recognised by the large
majority of countries and reflected in the patterns of international
food aid flows. However the international institutions are not
yet reflecting these developments appropriately. ActionAid therefore
proposes to transform the World Food Programme (WFP) to become
the central organisation for monitoring and administering international
food aid flows. It should introduce a detailed Code of Conduct
for the design and implementation of food aid programmes, stressing
the importance of community involvement in programme design and
management.
4.13 Only food aid provided by the WFP itself or by organisations
adhering to the Code of Conduct should be considered as genuine
food aid. All other aid flows should be considered as subsidised
exports and phased out under the disciplines of the WTO. The Food
Aid Convention should be transformed into a commitment of the
major donors to provide the WFP with sufficient resources to run
its programmes. These should preferably be cash transfers.
4.14 For Doha to be a genuine development agenda, ActionAid
calls for:
The total level of agricultural support in OECD
countries to be substantially reduced. All forms of agricultural
export subsidies should be eliminated immediately and that trade
distorting domestic production subsidies should be phased out
as soon as possible.[10]
Developed countries should support the introduction of a development
box in the Agreement on Agriculture, providing developing country
governments with the flexibility to protect their small farmers
from dumping.
The Marrakesh Decision of 1994, which promised
transitional support to compensate food importing developing countries
for any rise in food prices, should be overhauled and made operational.
Food aid should be provided by a transformed WFP
or by organisations adhering to a Code of Conduct. The Food Aid
Convention should be transformed into a commitment of the major
donors to provide the WFP with sufficient resources to run its
programmes. These should preferably be cash transfers.
5. TRIPS (FOOD
SECURITY AND
HEALTH)
5.1 ActionAid has included a section on TRIPs because
of its critical importance to food security and public health
issues in developing countries.
TRIPs and Food Security
5.2 Patents on the genetic resources for food and agriculture
(GRFA) will accelerate the corporate takeover of the seed sector
(see accompanying ActionAid briefing Crops and Robbers).
Patents promote the consolidation of global seed and agri-chemical
businesses, concentrating power over seeds and seed choices in
a very few hands. ActionAid's analysis shows that patents and
other forms of intellectual property protection on the genetic
resources for agriculture can decrease farmers' access to seed,
reduce efforts in publicly funded plant breeding, increase the
loss of genetic resources, prevent seed sharing and threaten the
livelihoods of poor farmers. In addition, the increasing shrinkage
of the genetic base is responsible for greater risk of crop failure
and thus food security.
5.3 ActionAid also believes that intellectual property
rights are inappropriate in relation to living organisms and indigenous
knowledge. The TRIPs Agreement has made it possible for companies
to patent and exploit the traditional knowledge and local genetic
resourcesusually plants and medicinesof poor communities
worldwide. In the developing world, genetic resources, food security
and indigenous knowledge are intricately linked, with the holders
of indigenous and community knowledge also the users and preservers
of the genetic resources.
5.4 Claiming private property rightsthrough patentson
plants, processes and knowledge developed over centuries by generations
of farmers has serious food security implications not least for
the 1.4 billion farmers worldwide who rely on farm saved seed.
The recent Commission on Intellectual Property Rights recently
concluded that a "one size fits all" approach does not
work in the area of intellectual property, and that countries
with varying levels of development need flexibility in their policy-making
arena. Hence developing countries should not be obliged to provide
patent protection on GRFA.
TRIPs and Public Health
5.5 In the four years since the committee last looked
at the impact of the WTO on the world's poorest nations, an entirely
new area has come to light where trade rules are having an impact
on the poorest people of the world. The importance of the role
of patent protection in restricting (or increasing) access to
medicines had not been recognised at that time but has since come
to dominate much debate in the TRIPS Agreement.
5.6 The idea that the health of the population is solely
an outcome of economic well-being has finally been exploded by
the WHO Commission on Macroeconomics and Health[11]
which concluded that "The burden of disease in some low-income
regions, especially sub-Saharan Africa, stands as a stark barrier
to economic growth and therefore must be addressed frontally and
centrally in any comprehensive development strategy. The AIDS
pandemic represents a unique challenge of unprecedented urgency
and intensity."[12]
5.7 Doha reaffirmed the rights of poor countries to use
existing TRIPS provisions to compulsorily license patents or parallel
import patented medicines. It also committed the WTO to identify
a solution by the end of 2002 to the anomaly that allows for production
but not importation of generic copies of patented medicines that
would otherwise be out of the reach of these countries. There
is significant evidence that competition between patented and
generic copies have increased access to medicines in some of the
poorest countries. Under the TRIPs Agreement, several producer
developing countriessuch as Indiawill have to stop
exporting generic medicines when they become TRIPs compliant in
2005. ActionAid notes with great concern the failure to reach
an agreement allowing a systematic, comprehensive and meaningful
solution by December 2002.
5.8 In addition, ActionAid retains serious concerns about
the implementation of TRIPS and the impact this is currently and
will have on access to patented drugs in poor countries with significant
health problems. There is evidence that additional pressure is
being put on many LDCs to introduce TRIPS-compliant legislation
far in advance of their current deadline of 2016. Further, that
pressures from Northern governments as well as the technical support
provided, are leading to fuller and more restrictive legislation
than is currently required under WTO Agreements. [13]
5.9 ActionAid is concerned that the UK Government has
not taken a lead in fighting for trade rules to promote the interests
of least-developed countries, particularly those with high-prevalence
HIV epidemics, and has instead sought solutions that are being
frustrated by the interests of the pharmaceutical industry
(UNAIDS Accelerated Access Initiative, UK Working Group on Increasing
Access to Essential Medicines in the Developing World). However
we enthusiastically congratulate DFID for establishing the independent
Commission on Intellectual Property Rights and welcome its report
and urge the committee to endorse its findings and support its
swift implementation.
5.10 To make Doha a genuine development agenda, ActionAid
calls for:
The review of the TRIPs agreement should include
an assessment of the agreement's developmental impact with a view
to allowing developing countries greater flexibility in determining
the length and scope of patents from a public interest perspective.
The review of TRIPs Article 27.3 (b) must clarify
that there should be no patents on genetic resources for food
and agriculture.
As part of special and differential treatment
(and also the implementation agenda), TRIPs deadlines for all
developing countries should be based on their achievement of development
milestones, not arbitrary dates.
Rich countries must honour their Doha commitments
that the TRIPS Agreement does not and should not prevent countries
from taking measures to protect public health. In particular,
restrictions should be lifted on the export of drugs to developing
countries which do not have the capacity to produce cheap generic
equivalents.
6. MARKET ACCESS
6.1 In the main, ActionAid will confine its comments
here to the agricultural sector.
South-North Market Access
6.2 Increased market access to developed countries for
developing countries' agricultural exports will not automatically
solve the problems faced by low income producers. To contribute
most effectively to poverty reduction in developing countries,
market access to the developed world must work in favour of the
poor, protect small-scale producers and be environmentally benign.
Wherever possible, it should facilitate added-value in situ (ie
exports should be in processed form). Often however the reverse
is true. Many exports, particularly from Asia and Latin America,
are from large-scale intensive production. For example from monoculture
plantations that have often been developed at the expense of small-scale
producers, are environmentally damaging, and are largely controlled
by transnational corporations and products are mostly exported
in the raw form. Little of the benefit trickles down to those
most in need. [14]Current
market structures mean large companies, and not the poor, stand
to benefit the most from any reductions in developed countries'
trade barriers. ActionAid believes that further research is required
to ensure that greater market access in the North is truly pro-poor
and pro-development.
6.3 However, ActionAid does welcome last year's "Everything
But Arms" (EBA) initiative to open EU markets to exports
from the least-developed countries because it is specifically
targeted at the world's poorest nations. But intensive lobbying
by powerful agricultural interests succeeded in delaying the full
liberalisation of sugar, rice and bananas. In the case of sugar,
this means that some of the most efficient producers and poorest
countries in the world will continue to see their access to EU
markets restricted until 2009. The loss of export opportunity
is significant: if Mozambique had unrestricted access to EU sugar
markets, as originally proposed, Oxfam estimates that it could
have been earning up to $106 million by 2004. To highlight concerns
raised above, the EBA only covers raw cane sugar (similar to the
preferential access granted to sugar from the ACP countries):
refined sugar imports are tightly controlled, limiting opportunities
for value-adding in a country like Mozambique which already has
refining capacity.
6.4 The way in which the EU implemented the EBA also
brings into question the priority the EU gives to development
compared to its own agricultural interests. In order to make room
for EBA sugar imports from the least developed countries, Europe
has only marginally cut back its own sugar beet production. The
bulk of the costs of increased least developed countries' access
has fallen on the developing country ACP suppliers who have seen
their quotas cut to the value of $105 million.
6.5 To make Doha a genuine development agenda, ActionAid
calls for:
Developed countries should grant all LDC exports
tariff-free and quota-free access to their markets.
Full and immediate access to EU markets for all
products exported from the least developed countries through the
"Everything But Arms" (EBA) initiative as originally
proposed by the European Commission.
The elimination of tariff escalation and peaks
in developed countries.
Improved market access in terms of the simplification
of complex tariff structures in the North.
A full and thorough assessment of the development
implications of non-agricultural market liberalisation in developing
countries is conducted prior to the start of any negotiations.
Developed countries to review and research how
access could be improved to Northern markets so as to address
poverty issues in the South, but at the same time to protect the
environment and small-scale, resource poor farmers. For example,
to ensure that increased exports do not lead to large scale, corporate-controlled
intensive production which often displaces small-scale farmers
from the land; to promote value-added processing in the South;
and to identify sectors for export that are labour intensive and
of benefit to small-scale producers.
North-South Market Access
6.6 Trade liberalisation through the Agreement on Agriculture
has already opened up developing country markets with devastating
impacts. US maize into Mexico and the Philippines; EU skimmed
milk powder into Jamaica, Kenya, India and the Dominican Republic;
and EU wheat flour exports to Indonesia. There is clearly an urgent
requirement for a development box within the AoA to enable developing
countries to protect small-scale producers and to develop their
own agricultural sectors, particularly if producers in North are
able to continue subsidising exports.
6.7 To make Doha a genuine development agenda, ActionAid
calls for:
The introduction of a development box in the AoA.
A full and thorough assessment of the development
implications of non-agricultural market liberalisation in developing
countries is conducted prior to the start of any negotiations.
This is essential in order to minimise the negative impacts on
their economies of market access negotiations for non-agricultural
goods.
7. SPECIAL AND
DIFFERENTIAL TREATMENT
7.1 WTO Agreements contain provisions which give developing
countries special rights (so-called "special and differential
treatment" provisions). In the main these have amounted to
longer time periods for implementing agreements and commitments,
lower reduction commitments or exempting certain countries. ActionAid
believes that the current S&DT provisions are inadequate and
this is amply illustrated in the Agreement on Agriculture.
7.2 S&DT within the AoA needs to be radically overhauled.
A number of developing countries have proposed the "development
box"[15] This is
in response to food security in these same countries being undermined
by the Agreement on Agriculture. Whilst developing country markets
are now more open to products from the North, northern exporters
at the same time are subsidising production to the tune of $300
billion per annum. Much of this produce is dumped. The production
of food security crops and productssuch as maize in the
Philippines and Mexico and milk products in India, Jamaica, Kenya
and the Dominican Republicare being undermined by cheap
imports from developed countries.
7.3 The development box would have three underlying principles.
The first is that it would only apply to developing countries.
Secondly, it is specifically targeted at small-scale farmers (also
termed low-income, resource poor farmers). Thirdly, government
would have the flexibility (positive discrimination) within the
AoA to "protect" food security crops and ultimately
to assist in the redevelopment of the agricultural sector. Instead
of having to cut tariffs and domestic support, the development
box would permit governments to raise them.
7.4 To make Doha a genuine development agenda, ActionAid
calls for:
The introduction of a development box in the AoA.
S&DT measures to be mandatory, legally binding
and enforceable.
A Framework Agreement on S&DT should be developed
so as to enshrine the concepts of S&DT and non-reciprocity
at the heart of the WTO. Trade liberalisation must not be allowed
to undermine the national policy and development objectives of
developing countries. In particular, S&DT should go beyond
the provision of longer transitional periods for developing countries
to implement the same rules as industrialised countries, and should
take the form of positive discrimination within the rules in favour
of developing countries and in line with their level of development.
8. CAPACITIES
8.1 WTO processes and negotiations are dominated by a
few powerful countries or trading blocs and many delegations continue
to be excluded. Imbalances in the WTO system prevent developing
countries from adequately participating and influencing international
trade and their negotiations. The main concerns include the following:
At the end of 2001, the average size of a developing
country WTO mission in Geneva is 3.51 people compared to 7.38
for developed countries. This affects their capacity in negotiations
and to promote their national interests. In addition, 20 least
developed and developing countries have no permanent mission in
Geneva.
The number and frequency of open-ended meetings,
which have increased in the context of on-going negotiations,
have also negatively affected the participation of developing
countries, and have not been matched by greater technical and/or
financial assistance. There are far too many meetings with overlapping
schedules.
Green room procedures have become an integral
part of the negotiating procedure at Ministerials (and elsewhere
in the WTO). They are usually by invitation only and dominated
by developed countries; invariably only a few key developing countries
are asked to participate. Key negotiating decisions are taken
at Ministerials in these "rooms" (and at, for example,
mini-ministerials). Other countries are entirely excluded.
Whilst rejecting new issues in principle, many
developing countries also believe that an extended remit post-Doha
and at Cancun will severely restrict their ability to negotiate
effectively across an increasing number of issues, particularly
when some implementation issues have yet to be addressed. It is
estimated that the post-Doha work programme may have increased
by as much as 50%.
8.2 Capacity building thus must address a number of related
issues; resources, the timetable, process (ie green rooms), and
the expanding remit.
To make Doha a genuine development agenda, ActionAid calls
for:
Training and capacity building should also be
targeted at national ministries and departments and the wider
participation of civil society. This should be a central feature
of the Doha commitment on technical co-operation and capacity
building (TCCB) after full consultation with developing countries.
The capacity of Geneva-based missions needs to
be strengthened considerably.
Green room processes should be scrapped in favour
of an open, transparent and fully participatory negotiating process.
New issues should be dropped as many developing countries will
be unable to participate in negotiations on such a broad agenda
or implement new obligations.
9. IN CONCLUSION
9.1 If the WTO and member states wish to present the
Doha round of negotiations as a development agenda, as this submission
has shown, a significant number of issues need to be addressed.
However, ActionAid does not believe that any of these issues are
being progressed to a sufficient degree to make Doha a development
round. Indeed, specific "development" issuessuch
as special and differential treatment, implementation (inc. textiles
and anti-dumping), and TRIPS and public healthwere supposed
to be decided by the end of 2002. This has not happened and timelines
in the agricultural negotiations are set to slip past the crucial
date of 31 March 2003 due mainly to the intransigence of developed
countries.
9.2 Clearly, the priorities of developing countries and
the world's poorest people continue to be marginalised compared
to the interests of the developed world. WTO membersparticularly
in the developed worldmust act to ensure that Doha becomes
a genuine development agenda.
ActionAid
January 2003
SUPPORTING EVIDENCE:
"Farmgate" ActionAid Policy Paper, September 2002
www.actionaid.org/ourpriorities/foodrights/farmgate.pdf
"Crops and Robbers" ActionAid Policy Paper, October
2001
www.actionaid.org/resources/pdfs/cropsrobbers.pdf
1
ActionAid was founded in the UK in 1972 and is part of ActionAid
Alliance with sister organisations in Ireland, France, Italy,
Spain and Greece. The Alliance works in over 40 countries in Africa,
Asia, Latin America and the Caribbean. ActionAid is now one of
largest international development agencies, working with over
seven million of the world's poorest people. Back
2
World Bank, 2002. Global Economic Prospects 2002. Washington. Back
3
Much of this section is taken from A Genuine Development
Agenda for the WTO. A joint paper by CAFOD, Save the Cildren,
ActionAid, Oxfam, Christian Aid, World Development Movement, Traid
Craft, World Vision, ITDG and the Fairtrade Foundation. January
2002.
3.6 New Issues: Developed countries
and the WTO Secretariat should respect the consistent opposition
of many developing countries to WTO negotiations on new issues.
3.7 TRIPs: Rich countries must
honour their Doha commitments that the TRIPS Agreement does not
and should not prevent countries from taking measures to protect
public health. In particular, restrictions should be lifted on
the export of drugs to developing countries which do not have
the capacity to produce cheap generic equivalents. In addition,
the review of TRIPS Article 27.3(b) must clarify that there should
be no patents on genetic resources for food and agriculture and
that the deadline for TRIPS compliance for all developing countries
should be based on their achievement of development milestones
rather than arbitrary dates.
3.8 Special and Differential Treatment:
The WTO should agree to a Framework Agreement on S&DT which
would embrace non-reciprocity and all aspects of S&DT across
all agreements. Such a Framework should include positive discrimination
within WTO rules that favour developing countries consistent with
their level of development (this would include the "development
box").
3.9 Dispute Settlement Understanding:
Reform of the DSU must ensure that developing countries can make
use of the system which currently has little if any practical
use for them.
3.10 Technical Assistance and Capacity
Building: A range of steps are required to ensure effective
participation by developing countries including negotiating capacity
in Geneva and capitals, interdepartmental research, and the involvement
of civil society.
3.11 Process: Negotiations should
be conducted in an open, fair and transparent manner with the
full participation of developing countries. Developing countries
should not be subjected to outside pressure and extraneous linkages
that are often tied to trade negotiations. Civil society and parliamentarians
should be granted greater access to WTO processes and all WTO
documents should be declassified and published.
3.12 ActionAid does not believe that
any of these issues are being progressed to a sufficient degree
to make Doha a development round. Indeed, specific "development"
issues-such as special and differential treatment, implementation
(inc. textiles and anti-dumping), and TRIPS and public health-were
supposed to be decided by the end of 2002. This has not happened
and timelines in the agricultural negotiations are set to slip
past the crucial date of 31 March 2003 due mainly to the intransigence
of developed countries.
4. AGRICULTURE Back
4
Further information on the negative impact of EU subsidies on
developing country agriculture, with case studies, can be found
in ActionAid's report "Farmgate: the Developmental Impacts
of Agricultural Subsidies" which is supplied as support evidence
to this submission. Back
5
See also briefing papers by CAFOD ("Dumping on the
Poor" October 2002) and Oxfam ("The Great EU Sugar Scam"
August 2002 and "Milking the CAP" December 2002). Back
6
Speech by Mike Moore, Director General of the WTO, 21 March 2002. Back
7
In early 2003, the first draft plans for a more fundamental reform
of the dairy regime were proposed by the European Commission.
The proposal calls for butter intervention prices to be reduced
by 7% per annum between 2004 and 2008 and for SMP intervention
prices to be reduced by 3.5% per annum over the same period. Back
8
The reason for this is that under current WTO rules, amber box
subsidies have to be reduced whereas blue box subsidies do not. Back
9
There are proposals from other countries within the renegotiation
of the AoA to get rid of the blue box. By proposing to move direct
payments into decoupled payments, this would enable the EU to
make such payments WTO compliant (they would fall under the green
box which is likely to remain within the WTO). Back
10
ActionAid believes that there should be a substantial decrease
in all subsidies (degressivity) and remaining subsidies in the
EU should be moved into Pillar 2 of the CAP. ActionAid is aware
that a number of sugar exporting developing countries benefit
from the higher EU internal price through the Sugar Protocol.
Once market price support for sugar is eliminated, this would
cost the same developing countries some $400 million per annum
(some countries may not be able to complete at the lower world
market price). Developing countries should be fully consulted
as to how to minimise the negative impacts of reductions in sugar
subsidies in the EU. Back
11
WHO 2001. Macroeconomics and Health: Investing in Health for
Economic Development, Report of the Commission on Macroeconomics
and Health. Back
12
Executive Summary, ibid. Back
13
US Bullying on Drug Patents: One Year After Doha, Oxfam briefing
paper 33, 2002. Back
14
It is estimated that banana producers receive about 5 cents in
every dollar for each banana sold. For each cup of coffee, the
farmer receives less than 1 cent in every dollar. Back
15
The countries that proposed the development box are Cuba, Dominican
Republic, Honduras, Pakistan, Haiti, Nicaragua, Kenya, Uganda,
Zimbabwe, Sri Lanka and El Salvador. Back
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